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Ten years since taper tantrum

If the exogenous pressures were the same across 2013 and 2022, why were outcomes so different across the two episodes?

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Reserve Bank of India Governor Shaktikanta Das. Since 2013, the RBI has used every opportunity to accumulate foreign exchange reserves and build up a war-chest

Sajjid Chinoy

11 min read Last Updated : Sep 15 2023 | 10:16 PM IST

During the Taper Tantrum of 2013, India’s macro stability came under significant pressure. Last year, in contrast, India’s macro stability was unscathed despite the most aggressive global monetary tightening in four decades. What changed in 10 years?

The tantrum that was

This year marks the 10th anniversary of the Taper Tantrum of 2013. In these months a decade ago, at the first hint the Fed would taper the avalanche of liquidity it had injected following the 2008 crisis, global financial markets threw a tantrum, inducing a “sudden stop” of capital flows into emerging markets. The consequence: mayhem across several

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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